Those banks, named by the IMF in its biannual Global Financial Stability Report, are Citigroup, Barclays, Deutsche Bank, Société Générale, UniCredit Group, Standard Chartered, Sumitomo Mitsui Financial Group, Mizuho Financial Group, and Mitsubishi UFJ Financial Group are all expected to deliver subpar profits. In 2015, the Indian economy had grown at 8%.
This, the IMF argued, could reduce the capacity of central banks to lower real interest rates in another economic downturn.
For 2017, the Argentinean GDP growth estimate was raised to 2.5, from 2.4% in the previous report.
Accounting firm Deloitte said in a September report that India will flex its economic muscles over the next few years: "China's rise across recent decades indeed moved the world".
The IMF noted that the consensus among banking analysts was for a return on equity of less than 8 percent by 2019 for each of the nine banks.
"While some inequality is inevitable in a market-based economic system, excessive inequality can erode social cohesion, lead to political polarisation, and ultimately lower economic growth", the IMF said.
It projects world growth to increase from 3.2 per cent in 2016 to 3.6 per cent in 2017 and 3.7 per cent in 2018-an upward revision of 0.1 percentage point for both 2017 and 2018 relative to its April report. The country's exports would also benefit from increased external demand.
According to IMF's Economic Counsellor, Maurice Obstfeld, "The global recovery is continuing, and at a faster pace".
"The picture is very different from early last year, when the world economy faced faltering growth and financial turbulence".
"The downward revision relative to April forecasts reflects a major correction in U.S. fiscal policy assumptions", the IMF wrote in its latest World Economic Outlook report. That is not to say that a number of economies are not growing stronger; many countries are growing at five percent so that is a favorable story although it comes with risks, with some countries with public debt has been quiet strong.
The U.S. economy will still expand, the IMF predicts, just not as quickly as some had hoped.
Mr. Jaitley said the GST Council meets every month and reviews the situation to make amends to the programme.
"In addition, tax systems are less progressive than indicated by the statutory rates, because wealthy individuals have more access to tax relief", Gaspar said in the blog co-written with Mercedes Garcia-Escribano.
Together, ASEAN-5, China and India are seen growing at 6.5% in 2017 and 2018, outpacing the aggregate growth of emerging and developing economies in the list.